60-second summary
Here are the key points to know:
You may need to send proof of your no claims discount (NCD) to your new provider when you switch.
This may be required within a certain number of days/weeks. If you miss the deadline, your premium could go up, or your policy may be cancelled.
Your renewal letter, or cancellation notice from your current provider, should detail how many years of no claims you’ve built up.
You can also ask your former provider to send you a letter as proof.
Your no claims discount is usually valid for two years from the date your car insurance expires.
Check with your new provider to see what it classifies as proof of no claims
How to get proof of your no claims bonus (NCB)
Your insurance provider may not always send you proof of a no claims bonus (or discount – it’s the same thing) automatically when you switch.
If you’re asked for proof of no claims by your new provider, here’s how to find it yourself:
Look for the details on your renewal letter – you may be able to access this in your online account
Look at the cancellation notice you’ll receive if you’re switching
Contact your old provider and ask it to send you a letter as proof.
Once you’ve forwarded proof to your new provider, it should confirm it has received it. If you don’t hear anything, follow up to make sure.
What is a no claims bonus?
A no claims bonus can earn you a discount on your car insurance premium by proving to an insurance provider that you’re less of a risk to insure, based on your claims history.
Each year that you drive but don’t make a claim on your car insurance, you’ll be awarded a year’s worth of no claims bonus. The more consecutive years that you build up without making a claim, the lower the risk you are viewed as by a motor insurance provider.
Because you’re a lower risk to insure, you’ll get a discount on your car insurance premium as a reward. This discount is usually calculated as a percentage of your premium. The longer you’re claim-free, the bigger the percentage.
How much could my no claims bonus save me?
There’s no set discount for drivers with a no claims bonus – it’s up to the provider to decide. But a longer period with no claims should reward you with a cheaper car insurance quote compared to drivers in the same circumstances who have a lower no claims bonus.
Indeed, your no claims discount plays a big part in how your car insurance premium is calculated.
According to the Association of British Insurers (ABI), you could get as much as a 30% discount on your car insurance premium for just one year without making a claim. Meanwhile, it estimates that drivers who have built up a five-year no claims bonus could get a discount of up to 60%.
How long does proof of no claims last?
In general, your no claims bonus will last so long as you’re insured and don’t make a claim.
However, the maximum number of years of no claims you can build up consecutively varies depending on the insurance provider. A limit of nine years is typical, but a few providers may let you keep earning for 15-20 years. Check the terms of your policy to see what applies to you.
Once you reach your provider’s upper limit, any additional years of no claims will stop counting. For example, even if you haven’t claimed in 15 years, it’ll still be marked on your record as nine – if that’s the provider's maximum.
Will my no claims bonus expire?
Your no claims bonus will typically last for two years after your car insurance has expired. So, if you don’t drive for more than two years, you’ll likely lose your no claims bonus and have to start building it up again.
If you’re renewing or switching your car insurance policy, then it’ll just continue to build – unless you make a claim, of course.
How long do I have to give proof of my no claims discount?
If you’ve switched to a new provider, it may ask you to send proof of the no claims bonus you stated when you got your quote. The timeframe varies among providers, but it could be due within one to three weeks of taking out your policy.
If you can’t provide it by then, your insurance may be cancelled or your premium could go up.
How do I know how much no claims bonus I have?
When you get a quote for car insurance, you may be asked how much no claims bonus you’ve built up over the years. If you’re not sure, your renewal letter or email is a good place to start. This will be sent to you before your renewal date, meaning you’ll still have time to switch.
Alternatively, get in touch with your insurance provider.
What counts as proof of no claims?
Insurance providers accept (and give) proof in different ways.
They’ll typically want to see something in writing from your previous provider, but they may have specific requirements about what information is included on the document. So, when you switch, it’s a good idea to check what proof of no claims your new car insurance provider will need.
Ask what details it needs to see on the document – the registration number of the car the discount applies to, for example. Also, check if you’re able to upload a scan to your provider directly or if you need to email or post a copy.
If it needs the original, make sure you keep a copy for your own records.
Protecting your no claims discount
Claiming for an accident where you’re at fault could mean losing some or all of that valuable no claims discount. Some drivers choose to pay a fee, on top of their insurance premium, to protect it.
But this doesn’t necessarily mean your premiums won’t rise if you have a collision.
Providers look at your driving history when they calculate your premium and they’ll take into account any claims that you have made when they calculate how risky you are to insure.
That means an accident could have an impact on how much you pay for your car insurance, even if you have a no claims bonus. But protecting your no claims bonus could still be worth it for you, if you’ve built up a considerable discount and you don’t want to risk losing it.
Ready to compare car insurance?
Because it can make such a difference to your premium, it’s worth shopping around to see what no claims discount you could earn from different providers and how it can affect your quote.
Compare car insurance from a range of UK car insurance providers and see if you could save by switching.
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With more than eight years’ experience in writing and sub-editing content, Karen started her career in fashion before making the move to insurance. She now specialises in producing clear, engaging content that helps people make better financial decisions.
Karen’s areas of expertise include insurance products, such as car insurance, travel insurance and life insurance, as well as utilities such as energy comparison.
Stephen Maunder is an experienced personal finance editor, having spent more than a decade working for consumer print and online titles. He won several industry awards for his personal finance features at Which?, before becoming Deputy Editor at Compare the Market.
Amy helps make sure you get the best value when choosing insurance. Thanks to more than four years’ experience at Compare the Market, she understands what people look for, working closely with insurance providers to offer you deals and services that are fair, easy to understand and right for your needs.
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What our expert says...
“A no claims bonus can make a big difference to the price you’re quoted for your car insurance, so it pays to make sure it’s transferred over correctly when you switch providers.
“If you’ve taken a break from driving, it’s good to know that your previous no claims bonus may still apply. As long as you’ve been insured to drive within the past two years, you should be able to continue building your no claims discount when you get back behind the wheel.”